Which of the Following Accurately Describe Reasons for Investing in Mutual

question 43

Multiple Choice

Which of the following accurately describe reasons for investing in mutual funds?
I. to effectively control the timing of capital gains for tax purposes
II. to achieve portfolio diversification at a reasonable cost
III. to invest in unfamiliar sectors or geographic regions
IV. to outperform the market

• A) I and IV only
• B) II and III only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Synergistic Benefits

Advantages gained from a merger or acquisition that allow for a performance greater than the sum of the two companies operating individually.

Merger

A merger involves the combination of two or more companies into one, where they pool their resources and operate as a single legal entity.

Debt Level

Represents the total amount of money owed by an individual, corporation, or other entity to lenders, which can impact financial health and creditworthiness.